Shares in the computer services business plummetted nearly 12pc to close at 62.1p, as Logica downgraded its forecasts for revenue growth in 2011 from above 3pc to around that figure. Analysts at Numis Securities said the warning was "another blow to management credibility, already at a low ebb".

Andy Green, chief executive of Logica, said the group had "thought long and hard" about the cuts but decided to "pull the trigger" after pockets of weakness seen in September widened considerably in the fourth quarter. "We're speaking to our customers and they're worried. They're saying they need to protect for the downside, so they need to cut back on any discretionary spend," he said.

"Everything from financial services to manufacturers to export businesses are affected. The oil and gas companies are pretty robust, but outside that [it's across the board]. I can't think of another time when there has been such an extended period of uncertainty." He predicted that the downturn would remain severe until 2013.

Mr Green said he "deeply regrets" the cuts, which account for just over 3pc of Logica's workforce. Around 200 will go from the UK, mostly in support services.

However, Mr Green dismissed suggestions he should not have left it so late.

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"In hindsight of course I wish we had done it earlier but I think we were right to take our time. Redundancy is expensive and people drive revenues, so we have got to be confident the market is not going to come back fast."

The redundancy bill will top £80m, and Logica will spend a further £13m exiting properties it no longer needs.